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Unemployment today is much higher in Europe than in the USA. This, however, was not always the case. From the 1960s … until the first half of the 1970s, unemployment in continental Europe was lower than in the USA. This was the time of the … vaunted “unemployment miracle” in Europe. These circumstances changed starting in the second half of the 1970s …
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We examine the impact of employment protection legislation (EPL) on individual firms' growth opportunities, as measured by Tobin's q. On the one hand, by increasing job security, EPL spurs innovation effort. Yet that boost only occurs in firms with little comparative advantage at original...
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This paper examines the economic effects of employment protection legislation in a sample of developed and developing countries. Implementing a difference-indifferences test lessens the potentially severe endogeneity and omitted variable problems associated with cross-country regressions. This...
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